National Republican., 1887-08-19


on their par value. OF course 1t was the
duty Of the Secretary, under these cir
cumstances, to purchase" enough of the
bonds to constitute one per centum OF the
entire debt because II was an immense
saving to the government to purchase
rather than to pay the face value. But
that does not authorize him to purchase now
when the bonds are at premium, first, be-
cause he has the alternative OF paying,
which means giving the face value, and,
second, because the Secretary bypuchdsing
at a premium increases the debt Of the United
States, and no one has authority to do ha,
ercept the Congress Of The United States.
The act OF 1869 provides that the bonds
can be "redeemed or paid" in the event Of
certain contingencies. There is no power to
'purchase" conferred by that act, because
the makers OF that law "to strengthen the
public credlr' contemplated that their
action would, as 1t did. place the bonds and
currency OF the United States at par.
This is the existing condition Of the law.
Now let US consider the condition of the
finances.
Notwithstanding the efforts OF the au
W CObCtui but luCtb lucIc 10 NV
now in active circulation In the country,
including all forms Of money, gold and sill
yer coin, gold and silver certificates, green
backs, and national bank notes, more than
| $500, ,0O0, ,00O-that is, about $l2 per capita,
| while in Great Britain the circulation Is t2i
per capita, and in France $43.
1t is admitted that even this limited sum
| OF money is being taken into the treasury
and withdrawn from circulation at the rate
Of more than $l0,O0O,OOO per month, pre-.
| saying perilous condition in the monetary
| affairs Of the country.
There is In the treasury largely over $780,.
| 00O, ,OO0-probable about S3i5, 100000 that
could be used to relieve any financial
| pressure II Secretary Farchild saw ct to
| obey the law of 1869. No one disputes
that greeDbacks are ct par with gold. Sec-
retary Fairchild bimself puts the interest
on government money be pays out at . per
cent. per annum, which, Of course, he
would not 40 unless It could b: procured
at about that figure, and the bonds now
out bear 4 or A per cent. interest. So the
time has arrived contemplated by the law
Of 1869, and bonds can be redeemed or
paid" as the law provides.
In 1881 Secretary Window, with green
backs at par, found he could sell United
States bonds at par bearing only 81 per
cent, interest, and thus save the people a
large sum Of money by lessening the rate OF
interest, and he refunded the per cent.
loan at that rate. He had no money to
"redeem or pay" the bonds as Secretary
Fairchild has, but he obeyed the spirit of the
law by refunding 10 new bonds bearing the
rate Of interest for which he could sell.
There is higher obligation on Secre-
tary Fair hild to redeem the bonds than
any necessity to relieve q strin-
gent money market. That should only
ie an incident to bis observance Of the
.aw. There are now outstanding $3.50, ,000,-
COO bonds, due in four years, bearing Al per
cent. per apnum interest. That interest
will amount to $45, 600, 900, making the total
sum needed to pay these bonds $295, ,000,-
eco. Secretary Fairchild can, under this
law Of 1869, call and pay every dollar of
these bonds at par, and in that way sare forty
tre million dollars Of the peoples money.
Besides this, Secretary Fairchild can take
st0,C00,000 still leaving enough in the treas
ury for all possible contingencies, and call
$4,000, 900 of the four per cent. bonds,
which have twenty years to run, and pay
them of, thus saving the interest, which
will amount in twenty years to 10000, ,OOO
and thus ssve that amount to the people.
And still further, the laws now in eI
isttnce provide an income over and above
all possible needs Of the government Of be
tween one hundred and twenty and one
hundred and fifty million dollars during
the present fiscal year. He can call and
pay at the end Of each quarter Of the
present fiscal year, that lie, on the
last days Of September, December, March,
and June, s25, COO, making total OF
800 100000 Of the per cents, and by sc
doing cave the people eighty million dol!
lars they will have to pay in interest.
In other words, with money now in the
treasury, and the surplus that is certain tc
accumulate during the present fiscal year
Secretary Fairchild can, if he tgW erecut,
he lar, pay Of four hundred million dollar
+ hepuJlic deJt, and sare The paymem, o.
one hundred and sirty.fre million dollars i,
interest.
= And the law authorizes stil more. Th,
debt not paid by the surplus can be re
, funded at lower rate OF interest. TIL
, bonds OF the United States bearing 2 pc
cent. interest can be floated at par. secre
tary Fairchild should do as Secretary Win
dom did; that is, call tho remainder OF tn
bends and "continue" them at a lower rat
than is now being paid. Secretary Win
dom called $3.50, 100000 worth Of undue
per cents ana issued 81 per cents In lieu O
them, and by SO doing saved the people So,
100000 per annum in interest.
While the NATIONAL REPUBLICAN, ha
not discussed this surplus and bon
question from partisan standpoint, bu
from the highest plane Of politict
ethice, we cannot close this revie'
without calling attention to the fact tha
. the lave of 1869 and 1859 were passed b
- Republican Congresses and approved
: Republican Presidents, that the men VIII
had successfully carried on the war fo
the IreseIvaiion OF the Union also mad
t the laws by which the debt created in th
2 gigantic work could also be paid at th
n very smallest cost to the people. The
4 provided for every contingency by whic
!. the peoples money could be saved TO tf
4 people; they put the nations finances
Q such a condition that It's credit is bette
than any nation in the world, and mad
: laws which gave the people the benefits {
2 all improvements; that Republican Seer,
y tary Of the Treasury executed the law &c
4 the benefit OF the people, and that Demo
. cratic secretary refuses to do so.
q |
c CHICAGO NOT BACKWARD.
| She Makea an EARLY Start IN gecu re ~,